[Assam] [assam] Opec Sees Sanctions Taking Toll on Iran Oil Production

[bhuban.baruah]

New York Times (May 18, 2012)


OPEC Sees Sanctions Taking Toll on Iran Oil Production
By THE NEW YORK TIMES
Iranian oil production, “the backbone of the Islamic republic’s 
economy,” fell by 12 percent in the first three months of the year and 
“is likely to fall even more, industry experts say, as sanctions make 
it increasingly hard for the country to find markets for its crude,” 
Thomas Erdrink writes in The New York Times.

“At a rate of more than 3 million barrels a day, Iran is still the 
second-largest producer of crude oil in OPEC after Saudi Arabia,” Mr. 
Erdrink writes.

But its production levels have been in gradual decline for years, 
“hampered by sanctions that have starved the industry of spare parts 
and new investment,” he writes.

Its more immediate problem now is a “lack of buyers, after new 
sanctions on financial institutions and pressures by the Obama 
administration on reliable customers” like India, China and the 
Southeast Asian nations.

“We are not selling as much as before, and the use of outdated 
equipment is taking its toll,” said Reza Zandi, an oil specialist 
writing for Shargh, a newspaper that is critical of the government. 
“Clearly this is not serving Iran’s interest

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